Nebraska Marijuana Business

What is the Demand for Marijuana in Nebraska?

Currently, marijuana is fully illegal in Nebraska, so the state has no legal market for it. Although unlawful and attracts strict penalties, state residents still use marijuana. According to a report by the Substance Abuse and Mental Health Services Administration (SAMHSA), between 2017 and 2019, the annual average prevalence of past-month cannabis use in Nebraska was 6.5% among youths aged 12 to 17. During the same period, the percentage of persons aged 12 to 17 who used marijuana for the first time in their lives was an annual average of 5.9%.

Among persons aged 18 to 25 in Nebraska, the SAMHSA report revealed that the annual average prevalence of past-year marijuana use between 2017 and 2019 was 34.9%. It was 12.8% among individuals aged 12 or older during the same period. Similarly, a Nebraska Drug Control Update showed about 27% of marijuana treatment admissions in Nebraska in 2011. These figures reveal the potential demands for marijuana in Nebraska if the state legalizes the substance for either medical use or recreational purposes, or both.

How is Marijuana Taxed in Nebraska?

Although marijuana is illegal in Nebraska, dealers are required to purchase a Drug Tax Stamp under the Nebraska Marijuana and Controlled Substances Tax Act. A dealer is anyone who illegally manufactures, produces, transport, or ships into Nebraska or in any way unlawfully obtains or possesses:

• At least 6 grams of cannabis
• At least 7 grams of any controlled substances sold by weight
• At least 10 dosage units of any controlled substance not sold by weight

In Nebraska, a drug tax stamp is proof that a dealer has paid the drug tax, and it must be purchased immediately after obtaining or possessing marijuana in the state. For marijuana, the drug tax is $100 per ounce or portion of an ounce of the substance. However, paying drug tax in Nebraska does not provide a dealer with immunity from criminal prosecution under federal or state law. Still, a dealer who does not have sufficient drug tax stamps risks having a lien on their property or paying a penalty equal to 100% of the drug tax. Nebraska drug tax stamps are only valid for six months from the date of purchase and are not transferable.

Revenues generated in a county under the Marijuana and Controlled Substances Tax Act through the Nebraska Drug Tax Program are remitted to the State Treasurer and distributed as follows:

• 5% to the Marijuana and Controlled Substances Tax Administration Cash Fund
• 47.5% to the County Drug Law Enforcement and Education Fund
• 47.5% to the Nebraska State Patrol Drug and Education Cash Fund

What is the Agency Taxing Marijuana Business in Nebraska?

While cannabis remains illegal for medical and recreational purposes in the state, dealers are required to purchase drug tax stamps from the Nebraska Department of Revenue. The Department provides payment options for dealers to pay for drug tax stamps. For information on marijuana tax in Nebraska, contact the Department of Revenue at (402) 471-5729 or in person at their office locations across the state. The Department's headquarters is located at:

Nebraska State Office Building

301 Centennial Mall S

Lincoln, NE 68508